Rich Want It Free

Physician's Money Digest, October15 2004, Volume 11, Issue 19

Warning:

When it comes to seeking financialadvice, the rich want it on the cheap.According to a survey by SpectremGroup, fewer than 20% of householdswith $500,000 or more in investableassets turn to fee-based independentfinancial planners to put together aninvestment strategy. Despite their loftynet worth, affluent investors don't wantto pay more than $1000 for a financialplan, and most don't want to pay anything.In fact, most of those with afinancial plan in place got it free, as aperk in return for their business.Financial gurus caution thatfree plans often come with stringsattached. The broker may be earningcommissions on the financial productsrecommended in the plan, which sets upa conflict of interest that's usually not inthe investor's favor.